Twilio sees lower revenue from Uber, shares slump

FILE PHOTO - A banner for communications software provider Twilio Inc., hangs on the facade of the New York Stock Exchange (NYSE) to celebrate the company's IPO in New York City, U.S., June 23, 2016. REUTERS/Brendan McDermid

(Reuters) - Twilio Inc forecast lower-than-expected revenue for the full year, and said contribution from key customer Uber Technologies Inc would drop as it cuts back on using the cloud-based communication software maker's services.

Twilio's shares plunged more than 30 percent to $23.65 in after-market trading on Tuesday.

Uber will reduce usage of the company's communications services over the next year, Twilio's Chief Executive Officer Jeff Lawson said on an earnings call.

Uber, which used to utilize Twilio's services in the majority of its operating territories, is changing it on the basis of use case and geography, Lawson said.

The ride-hailing service provider accounted for more than 10 percent of Twilio's revenue in 2016, according to a regulatory filing.